In an open market transaction, Singapore-based DBS Bank today offloaded its entire 2.7% stake in HDFC Bank for Rs 1,291.12 crore, pulling down share prices of the country's second largest private lender over 2 % on the BSE.

A DBS Bank spokesperson said, "DBS has offloaded its entire stake in HDFC Bank as it is an opportune time for divestment. This was a portfolio investment which we had made few years back. We remain committed to India as a focus of our growth plans."

After touching an intra-day low of Rs 1,110.10 on BSE HDFC Bank scrip dropped 2.83 % to end at Rs 1,143.50 at the same time as over 1.36 crore shares changed hands at the bourse.

However, spokesperson of HDFC Bank has declined to comment on the stake sale by DBS.

By the March end quarter, DBS Bank held shares representing 2.73 % stake in HDFC Bank.

Further is has been reported today by DBS Group Holding that the net earnings of 456 million Singapore dollars in the first quarter of 2009 and its revenues increased by 6% to a record 1.66 Singapore.

(Via TopNews Singapore. Contributed by Parminder Singh )